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Pasatiempo was founded by Marion Hollins, winner of the 1921 Women's U.S. Amateur Golf title and captain of the US Curtis Cup team in 1932. Marion Hollins came to California in the mid-1920s to work for Samuel Morse, owner of the Pebble Beach company, and given responsibility for establishing Cypress Point golf club. After Seth Raynor died, she hired Alister MacKenzie to design the course. MacKenzie gives her credit for designing Cypress Point's famous par 3 16th hole.

After Cypress Point, Marion Hollins set out to build her own golf course and sports center, and on January 12, 1928 she announced that she would be building a sports and real estate complex on land just outside Santa Cruz, CA, calling the area Pasatiempo Estates. She hired noted architect William Wurster to build her home, which still stands today at 33 Hollins Drive inside Pasatiempo. She also brought in Alister MacKenzie to design a course at Pasatiempo Golf Club, which opened in September 1929 with a match featuring Bobby Jones [3] MacKenzie established his home in Pasatiempo, which still stands along the 6th Fairway of the course on Pasatiempo Drive. Pasatiempo Golf Club is located in the community.[4][5]

Although Marion Hollins' plans for Pasatiempo originally included a steeplechase course, bridle paths, a park and a beach club on Monterey Bay, her ambitious plans were thwarted by the Depression, In November 1940, she left Pasatiempo in a shakeup of Pasatiempo Estates and moved to Monterey, where she died of cancer. Today, Pasatiempo Golf Club remains a Top 100 Golf Club, and the development still has the original clubhouse (now called the "Hollins House"), a swimming pool, and tennis courts.[6]

There were 423 households, out of which 90 (21.3%) had children under the age of 18 living in them, 284 (67.1%) were opposite-sex married couples living together, 22 (5.2%) had a female householder with no husband present, 19 (4.5%) had a male householder with no wife present. There were 13 (3.1%) unmarried opposite-sex partnerships, and 6 (1.4%) same-sex married couples or partnerships. 75 households (17.7%) were made up of individuals and 42 (9.9%) had someone living alone who was 65 years of age or older. The average household size was 2.46. There were 325 families (76.8% of all households); the average family size was 2.74.

The population was spread out with 170 people (16.3%) under the age of 18, 58 people (5.6%) aged 18 to 24, 159 people (15.3%) aged 25 to 44, 372 people (35.7%) aged 45 to 64, and 282 people (27.1%) who were 65 years of age or older. The median age was 53.7 years. For every 100 females there were 102.9 males. For every 100 females age 18 and over, there were 103.5 males.

There were 449 housing units at an average density of 508.1 per square mile (196.2/km²), of which 90.8% were owner-occupied and 9.2% were occupied by renters. The homeowner vacancy rate was 1.5%; the rental vacancy rate was 4.9%. 89.5% of the population lived in owner-occupied housing units and 10.5% lived in rental housing units.